Moroccans living abroad injected 11.8 billion dollars into the Kingdom’s economy, representing 8.2 per cent of national Gross Domestic Product (GDP).
In 2023, Morocco benefited from an exceptional financial windfall with remittances reaching a record $11.8 billion, representing a significant contribution of over 8.2 per cent to the country’s (GDP).
This remarkable performance testifies to the unwavering attachment of Moroccans living abroad to their homeland and their crucial role in supporting the national economy.
Exchange rate fluctuations have played a major role in these transfers, reflecting a series of determining factors, both economic and financial and psychological.
The exchange rate, a key economic indicator, is the price of one currency against another. Variations in this rate, particularly those weighted by the economic weight of trading partners (effective exchange rate), are influenced by the foreign exchange market, where over $7,000 billion are traded every day.
The economic determinants of exchange rates include a country’s trade balance; a deficit can cause its currency to depreciate. Financial factors, such as interest rates also play a role: an increase by the central bank can attract foreign capital, thereby strengthening the national currency.
Finally, psychological factors, fuelling speculation, can lead to significant currency appreciation or depreciation, as seen with the safe-haven value of the US dollar during the current geopolitical crisis.
Despite an overall decline in remittances to the Middle East and North Africa, Morocco has maintained a steady flow of remittances, even outstripping foreign direct investment and official development assistance.
The solidarity shown by Moroccans living abroad was particularly evident following the earthquake in Al Haouz, underlining the importance of these transfers to the Kingdom’s economic resilience.
MN/te/fss/GIK/APA